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Billionaire hedge fund legend: Bitcoin price will reach $ 40,000 in 2018

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Legend of the billionaire hedge fund and former fortress ruler Mike Novogratz believes the bitcoin price will easily reach $ 40,000 by 2018.

On CNBC's Fast Money, Novogratz expressed optimism for both Bitcoin and Ethereum over the medium term. Novogratz, who predicted that the price of bitcoin would reach the $ 10,000 mark before the end of 2017, announced that the price of bitcoin will quadruple by the end of 2018 and that the price of Ether, Ethereum cryptocurrency, will triplerate.

"Bitcoin could be up to $ 40,000 by the end of 2018. It could easily do that – Ethereum, which I think has hit $ 500 or getting closer, could be tripled where it's going. is also, "said Novogratz

Why is Novogratz so confident?

Earlier this year, Novogratz officially retired from the traditional financial industry to focus solely on investments in cryptocurrency. Over the last few months, Novogratz has been meeting with many institutional investors, who are already preparing to engage in bitcoin trading by the end of the year, during the launch. the CME bitcoin futures exchange.

Novogratz noted that a large "wave of institutional investors" was arriving on the bitcoin market around the world, with several large companies like Man Group and Fidelity Investments, which manage more than 3 , $ 2 trillion in assets. investors in the bitcoin market.

"There is a big wave of money coming in, not just here but all over the world." What is different from those coins that d & # 39; other products … there is no answer from the offer here.The dream of a speculator is therefore that the purchase does not result in a new reaction from So, every price move is exaggerated, it's going to be exaggerated upwards, there will be 50% corrections, it's going to become exaggerated on the way down. "

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Novogratz is not the only investor to have anticipated significant price corrections in the distant future. This week, BitGo's engineer, Jameson Lopp, said major fixes could occur throughout the bitcoin development process in a multi-billion dollar market. But, Lopp pointed out that it is important to recognize that even an extreme correction such as a 50% price drop would only delay by two months the price of bitcoin.

In bull markets like bitcoin, the vast majority of investors often fail to recognize strong rallies and massive price gains, and focus on occasional write-downs.

Is $ 40,000 by 2018 possible?

Since the beginning of the year, in 2017 alone, the price of bitcoin has almost been multiplied by 11, from 900 to 9 700 dollars. Compared with a value increase of 11 times, a four-fold increase in price seems more realistic and likely.

In 2017, the bitcoin market was led by consumers and casual investors. Virtually no institutional money has been invested in Bitcoin. By 2018, experts like Novogratz, George Kikvadze, vice president of Bitfury, and Brian Armstrong, CEO of Coinbase, expect tens of billions of dollars to be invested in Bitcoin, which will will bring the value of the market to one trillion dollars .

"Crypto Space is $ 300 billion, and already some private wealth management offices are positioning themselves to respond to newly minted cryptocurrency millionaires, and now it will be interesting," Kikvadze wrote.

Image from Shutterstock.